Should (you) be offered an investment, first ascertain the legality of the company and its products
Jakarta (ANTARA) - The Financial Services Authority (OJK) has cautioned people against investing in binary options or opting for investments made through forex trading robots, which have become rampant lately but have not been permitted by the agency.

"Should (you) be offered an investment, first ascertain the legality of the company and its products," OJK spokesperson Sekar Putih Djarot advised in a statement received here on Tuesday.

Binary options are a form of online trading where traders predict or guess the rise and fall of an asset's price over a certain period of time, she explained.

Meanwhile, forex trading robots are automated software programs that allow traders to generate trading signals or orders and manage trades in the forex market, he added.

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So far, the Financial Services Authority has not issued permits for binary options and forex trading robots, she informed.

"The Financial Services Authority has also strictly prohibited banks from facilitating binary options and forex trading robots, which have been suspected to contain elements of fraud, gambling, or Ponzi schemes," she explained.

She also reminded influencers to check for legal permits from related authorities before endorsing financial products and services. This would ensure that people do not fall victim to financial fraud, she said.

Crypto assets and commodity futures trading products—such as gold, foreign exchange, and others—are not financial products or services licensed by the Financial Services Authority, she informed.

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However, their licensing, regulation, and supervision are under the Commodity Futures Trading Supervisory Agency (CoFTRA) of the Trade Ministry, she added.

Recently, chairperson of the People's Consultative Assembly, Bambang Soesatyo, had expressed support for the police's efforts to protect people from investment fraud through measures such as educating people and punishing perpetrators.

The police have asked several institutions, such as the Indonesian Chamber of Commerce and Industry, the Financial Services Authority, the Investment Coordinating Board, and the Commodity Futures Trading Supervisory Agency, to coordinate with each other to disseminate information on financial services to the community.

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Translator: Citro Atmoko, Mecca Yumna
Editor: Fardah Assegaf
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